See the stark contrast in the headline? Yeah. One company, which was reporting record breaking profits every quarter, is showing a huge drop in its revenue, while the other, which didn’t do as well in the early days, is estimating huge profit. Both for Q1, 2012.
The former is HTC, and the latter, Samsung. Both being Asian companies, having launched tons of Android devices (there are 80 smartphones from Samsung, belonging to the Galaxy brand), many with minor upgrades. Their positions, however, seem to be in stark contrast with each other. HTC is in a free-fall mode, while Samsung is reaching for the skies, and partly succeeding as well.
Some number crunching
HTC’s total revenue is down by a huge 35%, to $2.29 Billion. Profits after Tax stood at $152 Million in Q1, 2012, which are down from $500 Million in the same quarter last year. That’s a whopping 70% fall in profits. Operating profits stood at $172.9 Million.
The One series looks good, and should help with the numbers in the second quarter, I guess.
Samsung, on the other side, is absolutely killing it. The company’s Operating profits have nearly doubled to $5.15 Billion. Out of that, 60-70% is estimated to be contributed by handset sales. That’s around $3.1-3.6 Billion from handset sales. The Galaxy S3 launch should further increase the profits’ growth rate. I just am standing by to see just how much it increases. My bet – medium.
Note – HTC’s report hasn’t been audited yet. Samsung’s numbers are an estimate.